AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO A TAX EXEMPTION FOR NATIONAL GUARD AND UNIFORMED SERVICES OF THE UNITED STATES RESERVE MEMBERS.

Plain English Breakdown

The bill status shows it passed both chambers but was assigned to an Appropriations Committee on May 21, 2026; final enactment is not confirmed in the provided text.

Tax Exemption for Delaware National Guard and Reserve Members

This law allows members of the National Guard or U.S. military reserves to subtract pay from annual training, drills, field exercises, and inactive duty training from their state taxable income.

What This Bill Does

• Amends Title 30 of the Delaware Code to add a subtraction for specific military compensation from federal adjusted gross income.
• Exempts compensation received for federally required annual training, weekend drills, field exercises, and inactive duty training.
• Applies only to members of the National Guard or reserve components of the U.S. Uniformed Services.
• Sets the rule to take effect for tax years beginning after December 31, 2026.

Who It Names or Affects

• Members of the National Guard
• Members of reserve components of the U.S. Uniformed Services

Terms To Know

Inactive duty training

A type of military training listed in the bill alongside annual training, drills, and field exercises.

Federal adjusted gross income

The total amount of taxable income from which specific subtractions are made to calculate state tax liability.

Limits and Unknowns

• This exemption applies only to tax years beginning after December 31, 2026.
• The bill text lists 'retirement benefits' alongside compensation for training in the code section amendment, though the summary focuses on income from training activities.

Official Summary Text

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO A TAX EXEMPTION FOR NATIONAL GUARD AND UNIFORMED SERVICES OF THE UNITED STATES RESERVE MEMBERS.
This Act provides an exemption from state income tax for the amount of income or compensation received for federally required annual training, drills and field exercises, or inactive duty training by an individual who is a member of the National Guard or a reserve component of the Uniformed Services of the U.S. The bill’s provision applies to taxable years beginning after December 31, 2026.

Current Bill Text

Legislation Document

SPONSOR:

Rep. Carson & Sen. Hoffner

Reps. Bush, Gray, D. Short, Yearick, Hilovsky; Sens. Hocker, Mantzavinos, Pettyjohn, Richardson, Wilson

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE BILL NO. 405

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO A TAX EXEMPTION FOR NATIONAL GUARD AND UNIFORMED SERVICES OF THE UNITED STATES RESERVE MEMBERS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend § 1106, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 1106. Modifications [For application of this section, see 83 Del. Laws, c. 338, § 2]

.

(b)

Subtractions. —

There shall be subtracted from federal adjusted gross income:

(13) For tax years beginning after December 31, 2026, compensation and retirement benefits received for National Guard or reserve component of the Uniformed Services of the United States annual training, weekend drills, field exercises, or inactive duty training.

SYNOPSIS

This Act provides an exemption from state income tax for the amount of income or compensation received for federally required annual training, drills and field exercises, or inactive duty training by an individual who is a member of the National Guard or a reserve component of the Uniformed Services of the U.S. The bill’s provision applies to taxable years beginning after December 31, 2026.